22 May 2013

Cisco 14% rise in profits from services sales

Cisco recently published details of its 14% rise in profits from services sales.  We see this as part of the general trend for companies to move from selling products to providing services. Companies such as Dell and Xerox have diversified into services, following in the footsteps of IBM which has successfully grown its consulting and IT services business while pulling out of the PC market.

Service companies now account for 75% of the economic activity in developed economies and the number of firms providing services is growing rapidly. The reason? Companies are less interested in owning the product. They want the outcome from using it and that translates to a product, backed by services.  Our work with firms as diverse as BAE Systems and IBM shows that companies face common challenges as they take on new responsibilities:- defining what customers value, delivering it and managing the information and risks.

Professor Andy Neely is Director of Cambridge Service Alliance at the University of Cambridge, and a world authority on performance management and complex services.


  1. IT Plays an essential part in the efficient running of your organisation. But you may not have the staff, budget or infrastructure to support it. If you want IT to contribute to your company’s future profitability and success in more interesting ways, we can help.

  2. At Corporate ITech we know the importance of having the right infrastructure. To others, a loss of IT systems could be seen as simple loss. We are so particular about our work, that for us a downtime of a second is disastrous. This is the detail and standard we work to. When trying to find the right IT support companies in New York City a partner with a reactive response and service is vital.